A corporation operates three distinct profit centers, each of which sells a unique product. Each division currently rents its own warehouse with the following characteristics. Annual Cost Square Footage Required Division 1 $325,000 65,000 Division 2 145,000 30,000 Division 3 30,000 5,000 The corporation has the opportunity to rent a warehouse containing 110,000 square feet for $480,700 per year. This facility would be shared by all three divisions with the additional unused space reserved for the anticipated growth of Division 3. If the corporation uses the incremental cost allocation method to assign the $480,700 cost of the large warehouse, the amount allocated to Division 3 would be A. $28,842 B. $24,035 C. $10,700 D. $65,550
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A corporation operates three distinct profit centers, each of which sells a unique product. Each div...
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